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New Member
CrediblyCreditable
Posts: 2
Registered: ‎11-23-2012
0

So, what next?

Hey all,

Just wanted to say hi.  I've been reading the forum for a couple of months now and finally decided I should ask a question.  And that question is:  what next?

 

I'm 24, have a pretty decent job, have a good credit score, and enough of a total credit line to cover several months worth of expenses.  The three cards I have are ones that I've seen people on here use as "goal" cards, so now what do I do now, or do I just sit on my hands and know that I've done as much for myself as I can?

 

I don't have any real long term financial goals (I have zero debt and PIF on my cards) other than buying a house, for which I'm aggressively saving for a good downpayment, so I just wondered if there was anything else I could do for my financial well-being beyond improving my career and earning potential.

 

 

 

Credit Cards:

 

Discover More

Issued: August 2008

Credit limit: $5,500

 

Chase Freedom

Issued: June 2011

Credit limit: $3,000

 

AmEx BCP

Issued: August 2012

Credit limit: $10,000 (I did my 61 day CLI, though wussed out and did less than a 2x. Couldn't imagine asking for an 18k credit limit!)

 

USAA FAKOs: 780-795

 

I also am an authorized user on my dad's credit card from 1983 with a roughly 20k limit, which definitely helps things.

 

 

 

If any of you have suggestions on what I should, or even could, do in the future to improve my situation, I'd appreciate the feedback.

 

Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011
0

Re: So, what next?

[ Edited ]

CrediblyCreditable wrote:

 

 

Credit limit: $10,000 (I did my 61 day CLI, though wussed out and did less than a 2x. Couldn't imagine asking for an 18k credit limit!)

 

 


LOL try getting in with Navy Federal :smileywink:  my highest limit was $1,500 then they gave me a $17,000 automated online lol!  i'm debating on pulling the trigger on $5,500 BCP 3x soon for $16,500 :smileywink:

 

also what card is for your dad's? if it's an Amex get your BCP backdated asap, also get some type of loan under your credit belt, even if it's for a personal loan for $5,000 just take time and paying it back.


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
0

Re: So, what next?


distantarray wrote:

CrediblyCreditable wrote:

 

 

Credit limit: $10,000 (I did my 61 day CLI, though wussed out and did less than a 2x. Couldn't imagine asking for an 18k credit limit!)

 

 


LOL try getting in with Navy Federal :smileywink:  my highest limit was $1,500 then they gave me a $17,000 automated online lol!  i'm debating on pulling the trigger on $5,500 BCP 3x soon for $16,500 :smileywink:

 

also what card is for your dad's? if it's an Amex get your BCP backdated asap, also get some type of loan under your credit belt, even if it's for a personal loan for $5,000 just take time and paying it back.


I would spend $20 or so and pull the two available credit scores and reports from MyFico.   If they are similar to your FAKOs, then do the Amex backdate, but I see no point in getting a personal loan.   If your scores are already good enough to get best rates on a mortgage, paying out interest on a personal loan just to get the score even higher doesn't seem to make much sense.

 

 

Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011
0

Re: So, what next?


bs6054 wrote:

I would spend $20 or so and pull the two available credit scores and reports from MyFico.   If they are similar to your FAKOs, then do the Amex backdate, but I see no point in getting a personal loan.   If your scores are already good enough to get best rates on a mortgage, paying out interest on a personal loan just to get the score even higher doesn't seem to make much sense.


hmm.. on a better note just go get an account at DCU (digital credit union) and get Free Equifax Fico04 scores each month.

 

(same as the score on this site, free with checking or savings accounts.)

 

ignore the transunion scores on this site no one uses them besides Barclay.  (98 version, you want 04 scores for mortgage pulls.)

 

But with your scores here's a checklist and if you pass all you'll have 100% no reason to buy a score or sign up for DCU at all since you'll get the best rates.

 

1. Any baddies on your report?

2. Not enrolled in any kind of debt management programs

3. Have more than 2 years of credit history (not required but nice)

 

Generally 2 years + of clean history with no baddies and not enrolled in any debt management programs = 720+ where majority of banks will consider you A+ and with Fanny Mae, USDA or any other lender. If you have more than 4 years you should definately have atleast a 760+ then 100% of lenders should give you prime rates no matter what.

 

Also remember if you can get into a credit union like Navy Federal they're still offering 0% downpayments, and even without that you can get 3.5% downpayment loans as well. no need to save a huge downpayment. imo get the house you can afford with a reasonable budget left over, and minimum downpayment and keep more for emergency funds, always make the lowest payment amounts possible never do 15 year, always do 30. Never pay more and save all the money and pay it off in one lump sum at the end (as long as you have control and don't splurge into it)

 

also remember if your making payments over your mortgage amount each month you have to define ADDITIONAL AMOUNTS ARE TO BE APPLIED TO PRINCIPLE. otherwise some banks like bank of America loves to apply it towards interest and your principle will never go down. 


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Valued Contributor
SnackTrader
Posts: 1,566
Registered: ‎09-15-2012
0

Re: So, what next?

In my opinion, you are in a better place than SOOOO many people because you are debt free, and I don't think you need to do anything else.  You have three credit cards that work for you, and I am a big proponent of reducing the complications of credit.  Many members on here have 8 or more credit cards because they need to build their scores and credit history (or they have an app addiction, but we can save that discussion for another time).  You aren't in a place to build/rebuild and I know for a fact that most Americans do not carry that many cards, and there really is no need for it unless you WANT it.

 

As for other types of credit (a personal loan was mentioned above), I don't think it's necessary at all.  I'm sure some will disagree with me because they cite the "varying types of credit" portion of a credit score.  However, that's for MAXIMIZING a score, and it is by no means required for a high credit score.  Your credit appears on the surface to be very good (no baddies, right?) and should be able to get you qualified for a low rate mortgage without any installment debt reporting on your account.  Lenders are typically going to look to income and the amount of your downpayment and say "does this persons credit tell me they understand how to repay this loan?".  Your credit report will tell them that you understand how to make on time payments, regardless of whether the on-time payments are revolving or installment debt.  Also, why would you pay more interest for a loan you don't need?  My suggestion is to sit on your hands, continue paying on your cards and save for that mortgage.

 

Congratulations on all you've done so far, and keep it up!  


In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
Valued Contributor
SnackTrader
Posts: 1,566
Registered: ‎09-15-2012
0

Re: So, what next?


distantarray wrote:

bs6054 wrote:

I would spend $20 or so and pull the two available credit scores and reports from MyFico.   If they are similar to your FAKOs, then do the Amex backdate, but I see no point in getting a personal loan.   If your scores are already good enough to get best rates on a mortgage, paying out interest on a personal loan just to get the score even higher doesn't seem to make much sense.


hmm.. on a better note just go get an account at DCU (digital credit union) and get Free Equifax Fico04 scores each month.

 

(same as the score on this site, free with checking or savings accounts.)

 

ignore the transunion scores on this site no one uses them besides Barclay.  (98 version, you want 04 scores for mortgage pulls.)

 

But with your scores here's a checklist and if you pass all you'll have 100% no reason to buy a score or sign up for DCU at all since you'll get the best rates.

 

1. Any baddies on your report?

2. Not enrolled in any kind of debt management programs

3. Have more than 2 years of credit history (not required but nice)

 

Generally 2 years + of clean history with no baddies and not enrolled in any debt management programs = 720+ where majority of banks will consider you A+ and with Fanny Mae, USDA or any other lender. If you have more than 4 years you should definately have atleast a 760+ then 100% of lenders should give you prime rates no matter what.

 

Also remember if you can get into a credit union like Navy Federal they're still offering 0% downpayments, and even without that you can get 3.5% downpayment loans as well. no need to save a huge downpayment. imo get the house you can afford with a reasonable budget left over, and minimum downpayment and keep more for emergency funds, always make the lowest payment amounts possible never do 15 year, always do 30. Never pay more and save all the money and pay it off in one lump sum at the end (as long as you have control and don't splurge into it)

 

also remember if your making payments over your mortgage amount each month you have to define ADDITIONAL AMOUNTS ARE TO BE APPLIED TO PRINCIPLE. otherwise some banks like bank of America loves to apply it towards interest and your principle will never go down. 


Why does the OP need his/her scores every month?  Their original post mentioned nothing about it, and honestly it's not very necessary except to fulfill someone's curiousity.  I'm a fan of getting your free annual credit report from each of the bureaus at annualcreditreport.com once a year to check for fraud, and then leaving it be for the rest of the year.  Watching a 750+ score grow is going to be painful.  I do understand the desire to see it when you are building/rebuilding and climbing from low scores to higher scores.  But for this individual, I don't think a monthly credit report is worth it unless they are interested in it.

 

Pulling their score prior to applying for a mortgage is another story, as they want to get the best possible rate on their mortgage.


In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011
0

Re: So, what next?


SnackTrader wrote:

Why does the OP need his/her scores every month?  Their original post mentioned nothing about it, and honestly it's not very necessary except to fulfill someone's curiousity.  I'm a fan of getting your free annual credit report from each of the bureaus at annualcreditreport.com once a year to check for fraud, and then leaving it be for the rest of the year.  Watching a 750+ score grow is going to be painful.  I do understand the desire to see it when you are building/rebuilding and climbing from low scores to higher scores.  But for this individual, I don't think a monthly credit report is worth it unless they are interested in it.

Pulling their score prior to applying for a mortgage is another story, as they want to get the best possible rate on their mortgage.


You don't but why not get in with a good credit union + get your free scores every month? besides DCU is probably the best place to get Auto Loans in the United States since they do weekly payments upon request for car loans. Which sounds weird at first but since internet is aquired daily not monthly if you make 4 payments a month you actually end up saving a month's worth of interest every year opposed to paying monthly.

 

If it's free and leads you in a good bank why not? not required but it's pretty damn nice. I also mentioned he doesn't have to get anything if he passes the checklist :smileytongue:

 

 


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Valued Contributor
SnackTrader
Posts: 1,566
Registered: ‎09-15-2012
0

Re: So, what next?


distantarray wrote:

SnackTrader wrote:

Why does the OP need his/her scores every month?  Their original post mentioned nothing about it, and honestly it's not very necessary except to fulfill someone's curiousity.  I'm a fan of getting your free annual credit report from each of the bureaus at annualcreditreport.com once a year to check for fraud, and then leaving it be for the rest of the year.  Watching a 750+ score grow is going to be painful.  I do understand the desire to see it when you are building/rebuilding and climbing from low scores to higher scores.  But for this individual, I don't think a monthly credit report is worth it unless they are interested in it.

Pulling their score prior to applying for a mortgage is another story, as they want to get the best possible rate on their mortgage.


You don't but why not get in with a good credit union + get your free scores every month? besides DCU is probably the best place to get Auto Loans in the United States since they do weekly payments upon request for car loans. Which sounds weird at first but since internet is aquired daily not monthly if you make 4 payments a month you actually end up saving a month's worth of interest every year opposed to paying monthly.

 

If it's free and leads you in a good bank why not? not required but it's pretty damn nice. I also mentioned he doesn't have to get anything if he passes the checklist :smileytongue:

 

 


You make valid points, which is great.  I'm glad you can back up your advice, and I agree that getting a monthly score is useful for certain situations.

 

I just want to make clear that this is in no means a "requirement" or "formula" for achieving better credit.  And just to clear the air, I agree that you mentioned he doesn't need to do anything in your original post, so I apologize for making it seem like what you said did not apply.  I just like offering differing view points.  I hope the OP can better their situation with a combination of the opinions expressed on this forum.


In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011
0

Re: So, what next?

it's good, just always trying to look at things from all angles, but DCU is really a great credit union to get in with, 2 main reasons were Fico scores + auto loan in the future, besides they offer great mortgages too. Nice to give local banks in FL a run for their money :smileywink:


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758
Established Contributor
Cdnewmanpac
Posts: 767
Registered: ‎01-16-2012
0

Re: So, what next?

OP: it is a little hard to answer your questions without understanding what your goals are. Do you travel frequently, or internationally? Do you plan to buy a home or car in the next year or two? Getting married soon? Cards should serve a purpose for you specifically. That being said, the one obvious gap to me is the lack of a low interest, no frills card that you can carry a balance on if you need to. Something like the usaa rate advantage, under 10%. 

 

 

In wallet: Ink Plus 10k, AMEX TE 25k. In bag: CSP 16k, USAA WMC 15k, Hyatt 13k, United MPE 12k, AMEX HHonors 3k. In SD: Cap 1 QS 5k, Discover IT 7k. FICO 08 says my EQ is now 844, was 510 in 2010.

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